Portfolio Update

The information contained in this release was correct as at 31 March 2023. Information on the Company’s up to date net asset values can be found on the London Stock Exchange website at:

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

BLACKROCK WORLD MINING TRUST PLC (LEI - LNFFPBEUZJBOSR6PW155 )

All information is at 31 March 2023 and unaudited.
 

Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value -1.7% 0.0% -8.4% 154.4% 110.7%
Share price -1.0% -0.8% -4.9% 192.4% 142.0%
MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)* 1.4% 2.3% -6.6% 114.2% 74.4%
* (Total return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream

At month end

Net asset value (including income)1: 664.51p
Net asset value (capital only): 654.34p
Share price: 668.00p
Premium to NAV2: 0.5%
Total assets: £1,419.0m
Net yield3: 6.0%
Net gearing: 13.4%
Ordinary shares in issue: 190,298,036
Ordinary shares held in Treasury: 2,713,806
Ongoing charges4: 1.0%
Ongoing charges5: 0.8%

1 Includes net revenue of 10.17p.
2 Premium to NAV including income.
3 Based on a first, second and third interim dividend of 5.50p per share declared on 6 May 2022, 23 August 2022 and 16 November 2022 respectively, and a final dividend of 23.50p per share recommended on 2 March 2023 with ex-date 9 March 2023 and pay date of 26 April 2023 in respect of the year ending 31 December 2022.
4 The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended 31 December 2022.
5 The Company’s ongoing charges are calculated as a percentage of average daily gross assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended 31 December 2022.
 

Country Analysis Total
Assets (%)
Global 68.4
Australasia 10.6
Latin America 8.1
United States 5.8
Canada 4.2
Other Africa 2.7
Indonesia 0.8
South Africa 0.3
United Kingdom 0.2
Net Current Liabilities -1.1
-----
100.0
=====
Sector Analysis Total
Assets (%)
Diversified 37.5
Copper 22.1
Gold 13.9
Steel 8.3
Industrial Minerals 7.4
Aluminium 4.1
Iron Ore 2.9
Platinum Group Metals 1.9
Nickel 1.4
Mining Services 1.0
Uranium 0.4
Zinc 0.2
Net Current Liabilities -1.1
-----
100.0
=====

   

Ten largest investments
Company Total Assets %
Vale:
  Equity 7.2
  Debenture 2.6
BHP 8.7
Glencore 6.2
Rio Tinto 5.4
ArcelorMittal 4.5
Teck Resources 4.4
Freeport-McMoRan 4.2
First Quantum Minerals:
  Equity 2.5
  Bond 0.9
Newmont Mining 3.4
Norsk Hydro 2.7

   

Asset Analysis Total Assets (%)
Equity 94.5
Preferred Stock 3.5
Bonds 3.1
Net Current Liabilities -1.1
-----
100.0
=====

   

Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:
Performance
The Company’s NAV declined by 1.7% in March, underperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which rose by 1.4% (performance figures in GBP).

Equity and bond markets were volatile in March owing to uncertainty in the banking sector. The month saw two US banks collapse, Silicon Valley Bank and Signature Bank, whilst Credit Suisse’s challenged financial position saw the company acquired by UBS in an emergency deal. Expectations around central bank interest rate hikes fell aggressively on the back of this, however, which supported the performance of broader equity markets. The US Federal Reserve raised interest rates by 25 basis points but, prior to the banking uncertainty, a 50 basis point hike had been widely expected.

In mining-related news, we saw signs that domestic activity in China was continuing to improve, with higher steel production numbers and a Manufacturing PMI reading of 51.6. Within the mined commodities, precious metals performed best, benefiting from safe-haven demand amid the banking uncertainty and gold and silver prices ended the month +8.2% and +16.0% higher respectively. The industrial mined commodities mostly saw modest price increases, with copper and iron ore (62% fe.) prices rising by +0.6% and +0.8% respectively for example.
Strategy and Outlook
We do not expect the mining sector to be immune to deteriorating global economic growth. However, whilst recession looms for developed markets, the most important economy for mining, China, is moving in the opposite direction, re-opening following a year of lockdowns and a strict zero-Covid policy.

Meanwhile, mined commodity markets are generally tight, with inventories for many commodities at historic lows. At the same time, mined supply is being constrained by the underinvestment of recent years and continued capital discipline. Mining companies are in an excellent financial position, in our view, with high levels of free cash flow, rock-solid balance sheets and a continued focus on returning capital to shareholders.

Last year, we saw greater appreciation of the role mining companies will need to play in supplying the materials required for lower carbon technologies like wind turbines, solar panels and electric vehicles. In 2023, we expect Brown to Green to emerge as a key theme, where mining companies focus on reducing the greenhouse gas emissions intensity associated with their production. We expect to see a re-rating for the mining companies able to best navigate this and are playing this in the portfolio.

All data points are in USD terms unless stated otherwise.
20 April 2023

Latest information is available by typing www.blackrock.com/uk/brwm on the internet. Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.
UK 100